Financial News: South African Reserve Bank Cuts Policy Rate To

South African Reserve Bank Cuts Policy Rate To 7.75%

11/21/2024 - 09:22:00 (RTTNews)

(RTTNews) - South Africa's central bank slashed its key interest rate for a second policy session in a row on Thursday as policymakers assessed that inflation is now contained and that risks to both inflation and growth outlook were balanced.

The Monetary Policy Committee of the South African Reserve Bank, led by Governor Lesetja Kganyago, reduced the policy rate by 25 basis points to 7.75 percent, in line with economists' expectations.

The previous change was a quarter-point reduction in September.

"The Committee agreed that reducing the level of policy restrictiveness is still consistent with achieving the inflation target," Kganyago said. "The risk outlook, however, requires a cautious approach."

The central bank projections show rates easing further in future, stabilizing a bit above 7 percent.

The SARB expects temporary supply shocks to keep <a href=https://www.rttnews.com/3491759/south-africa-inflation-eases-to-2-8-lowest-since-june-2020.aspx target=_blank >inflation below 4 percent</a> until mid-2025 and thereafter inflation is forecast to climb to 4.6 percent from late 2025.

The next rate-setting session is scheduled for January 30, 2025.

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